China Daye Non-Ferrous Metals Mining Limited (HKG:661) shareholders have seen the share price descend 14% over the month. But that doesn't change the fact that the returns over the last year have been very strong. Indeed, the share price is up an impressive 213% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During the last year China Daye Non-Ferrous Metals Mining grew its earnings per share (EPS) by 109%. The share price gain of 213% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on China Daye Non-Ferrous Metals Mining's earnings, revenue and cash flow.
A Different Perspective
It's nice to see that China Daye Non-Ferrous Metals Mining shareholders have received a total shareholder return of 213% over the last year. That gain is better than the annual TSR over five years, which is 0.5%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for China Daye Non-Ferrous Metals Mining you should be aware of, and 1 of them is a bit unpleasant.
Of course China Daye Non-Ferrous Metals Mining may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
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